Countries follow the example of the Federal Reserve and do‘’t raise interest rat

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The dollar index rose 4.4% in 2018, the best year since 2015, as strong U.S. economic growth allowed the Federal Reserve to raise interest rates many times, even though most other developed economies struggled with a decline in momentum.

At the end of 2018, traders began to bet that the dollar would fall from an 18-month high as signs that the Fed was approaching the end of a three-year cycle of policy tightening. Many believe the Fed will also stop shrinking its balance sheet.


Other central banks, such as the European Central Bank and the Australian Central Bank, are preparing to start raising interest rates.
However, the dollar has rebounded after falling in December and January, rising by 1% so far in February. The dollar jumped more than 2% against some currencies, such as the Australian dollar.
Why? Economic momentum in other regions looks worse, forcing policymakers to cancel, postpone or soften their plans for tightening.
So even if the minutes of the Fed's last meeting confirm its pigeon shift, the dollar looks likely to continue to enjoy a yield advantage over other currencies.
"The resilience of the dollar this year surprised some people," said Richard Turnill, investment strategist at Blackrock.


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